Brookfield cancels offering; JPMorgan preferreds decline; AT&T improves

By James McCandless

San Antonio, June 22 – After starting with a positive push on Monday morning, the preferred space trailed off into negative territory by the close.

In primary news, Brookfield Infrastructure Partners LP postponed plans to price a $150 million offering of $25-par series 13 class A preferred limited partnership units.

As the volume leader, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock led the decline.

Elsewhere in the finance space, Bank of America Corp.’s 5% series LL non-cumulative preferred stock was also under pressure.

Sector peer Heartland Financial USA, Inc.’s new $100 million 7% series E fixed-rate reset non-cumulative perpetual preferred stock finished its first day under par.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferreds were improving, going against the trend.

Meanwhile, REIT Public Storage’s 4.625% series L cumulative preferred shares gained ground as the session ended.

Brookfield nixes preferreds

In late Monday primary news, Brookfield Infrastructure postponed plans to price a $150 million offering of $25-par series 13 class A preferred limited partnership units.

The company cited market conditions.

Announced Monday morning, talk for a dividend centered around the 5.375%-5.5% area.

JPMorgan declines

As Monday’s volume leader, JPMorgan’s 4.75% series GG non-cumulative preferred stock led the overall decline.

The preferreds (NYSE: JPMPrJ) were down 10 cents to close at $24.96 on volume of about 748,000 shares.

Elsewhere in the finance space, Bank of America’s 5% series LL non-cumulative preferred stock was also under pressure.

The preferreds (NYSE: BACPrN) shaved off 8 cents to close at $25.09 with about 439,000 shares trading.

Sector peer Heartland Financial’s new $100 million 7% series E fixed-rate reset non-cumulative perpetual preferred stock finished its first trading day under par.

The preferreds, trading under the temporary symbol “HRLLL,” were seen closing at $24.58 on volume of about 357,000 shares.

The deal priced late Friday.

AT&T up

Telecom services provider AT&T’s 4.75% series C perpetual preferreds improved, going against the trend.

The preferreds (NYSE: TPrC) improved by 15 cents to close at $23.84 with about 308,000 shares trading.

Public Storage better

Meanwhile, real estate investment trust Public Storage’s 4.625% series L cumulative preferred shares gained ground as the session ended.

The preferreds (NYSE: PSAPrL) tacked on 6 cents to close at $24.96 on volume of about 284,000 shares.

On Friday, the preferreds picked up 2 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day down by 0.42%, weakening after a 0.10% rise in early Monday trading.

The iShares US Preferred Stock ETF was down 16 cents to $34.87.

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